November 26, 2024

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Hyundai Mobis' North American regional office in Oakland Park Blvd, Michigan. (Hyundai Mobis)

Hyundai Mobis, a South Korean auto parts manufacturer, said Wednesday it has secured a $940 million green loan for the construction of electrification parts plants in North America, marking the company's first overseas foray into sustainable mobility financing.

It finalized the funding from seven international financial institutions, leveraging a long-term 10-year maturity period and low-interest rates supported by a credit guarantee from the Korea Trade Insurance Corp. Such financing mechanisms are becoming increasingly desirable among global financial institutions that are prioritizing sustainability, offering more favorable terms for eco-friendly projects.

Structured as a green loan, the capital will be directed toward constructing facilities in Alabama and Georgia that will produce battery systems and powertrains.

This development is part of the company's broader $1.3 billion investment plans in North America extending to 2030, enhancing Hyundai Mobis' manufacturing capabilities to meet increasing demand for electrification parts.

This investment is expected to expand Hyundai Mobis' international manufacturing footprint, which includes nine existing factories and six upcoming facilities, to increase its production of electrification components across Korea, North America and Indonesia.

By Moon Joon-hyun (mjh@heraldcorp.com)